Lifetime Tenancy same as Equity Release?

At first glance, our prospective investors often mistake a Lifetime Tenancy for Equity Release.

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Our brochure covers a bunch of frequently asked questions


Equity release is a debt registered against their property on a compound basis which is repaid when they die or go into long term care. With it’s official name, A Home Equity Loan, the person remains in their existing home. The amount they can release is dependent on their age. Typically the older they are the more they can borrow, this can sometimes lead to younger people not being able to release sufficient funds.

What is the difference between Lifetime Tenancy and Equity Release?

With Lifetime Tenancy they have already sold their existing property and are moving into a new property. They pay a one off amount to live in the property for the rest of their lives, there is no ongoing debt or cost attached to the property. All the proceeds they received from their previous property is available to them to use in which ever manner they see fit. This often leads to the Life Tenant having far more cash available to them than if they went down the Equity Release route.